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2025 Supreme(Kar) 1965

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
ANANT RAMANATH HEGDE, J.
 
Mr. R. Veeramani, S/o. S.P. Rangaswamy Chairman – Appellant
Versus
Mr. Anandgouda, S/o. Basanagouda Patil – Respondent
Writ Petition No. 106308 Of 2024 (L-PW)
Decided On : 19-12-2025
 

Advocates Appeared:
For the Appellant : Sri. K.R. Anand, Adv.
For the Respondent: Sri. L. M. Chidanandayya, Adv., For Sri. Hanumantha Reddy Sahukar, Adv., Sri. Venkatesh M. Kharvi, DSGI. Adv.

The authority under the Payment of Wages Act has no jurisdiction to impose wage payments if no work was performed; disputes arising must be addressed under the Industrial Disputes Act.

Headnote:(A) Payment of Wages Act, 1936 - Sections 2, 4, and 15 - Jurisdiction of Regional Labour Commissioner - Petitioner-Company directed to pay Rs.3,74,15,171/- to 72 applicants for delayed wages - Petitioner contended jurisdiction under Act, 1936 is without merit as no work was performed by employees during claims period - Court upheld that no wages are due where no work is done and dispute should be addressed under the Industrial Disputes Act, 1947. (Paras 4, 11, 23)

(B) 'No Work No Pay' principle - Admissibility under Payment of Wages Act is limited to situations where wages have been earned; thus, petitions to pay wages for a period when the mining activities were suspended are unsustainable due to lack of work performed. (Paras 18, 29)

Facts of the case:
Petition against order confirming wage payment to workers for 31 months during which no work was conducted due to non-renewal of mining license - Workers claimed unpaid wages from May 2020 to November 2022 due to delayed payments.

Findings of Court:
Regional Labour Commissioner lacked jurisdiction to order payment for months in which the employees did not work.

Issues: Determining whether the authority under the Payment of Wages Act had jurisdiction when minimal work was performed and the nature of the employment disruption.

Ratio Decidendi: The premise that wages can only be demanded when work is performed was reiterated, and it was established that disputes regarding employment cessation must be raised under the Industrial Disputes Act.

Result: Writ petition allowed; lower orders set aside.

Table of Content
1. challenge to wage payment order. (Para 1 , 2 , 3 , 4)
2. operation status of the petitioner’s quarry. (Para 5 , 6)
3. petitioner’s arguments against wage claims. (Para 7 , 8 , 9 , 10 , 11 , 12)
4. jurisdictional analysis under payment of wages act. (Para 13 , 14 , 15 , 17 , 19 , 21 , 22)
5. no work, no pay principle applicability. (Para 18 , 20 , 29)
6. citing precedents and jurisdiction limitations. (Para 23 , 24 , 25 , 26 , 27 , 28 , 30)
7. final order and relief granted. (Para 31)

ORDER :

ANANT RAMANATH HEGDE, J.

1. The petition is filed assailing the order dated 14.10.2024 in Misc. Appeal No.4/2024 on the file of IV Additional District Judge, Ballari.

2. In terms of said order, the impugned order dated 10.01.2024 passed by the Regional Labour Commissioner, Ballari directing payment of wages is confirmed.

3. The petitioner has also sought to quash the recovery certificate marked at Annexure-C dated 15.05.2024 issued by the Regional Labour Commissioner.

4. In terms of the order dated 10.01.2024, the Regional Labour Commissioner has allowed the claim petition dated 10.06.2022 filed under sub-section (2) of Section 15 of the Payment of Wages Act, 1936 (‘Act, 1936’). The Regional Labour Commissioner has directed the petitioner-Company to pay Rs.3,74,15,171/- to 72 applicants towards delayed wages from May 2020 to November 2022 (31 months). In addition, directed the petitioner-Company to pay compensation of Rs.3,000/- to each of 72 applicants named in the order.

5. Certain facts are admitted. The respondents were the workers under the petitioner which is a Company involved in granite business. The petitioner had quarry licence issued by the Department of Mines and Geology, Government of Karnataka which was valid for 20 years from 17.09.1999. On 24.09.2019, the petitioner issued a letter suspending the quarrying activities and intimation was submitted to Regional Provident Fund Commissioner, Raichur. On 08.11.2019, the petitioner claims to have filed Form No.1 intimating suspension of mining activities to the Director of Safety, Ballari on 01.04.2020.

6. The petitioner issued a general notice relating to stoppage of mining activity. Petitioner also issued a letter in Form-A to the Regional Labour Commissioner, Ballari.

7. The petitioner contends that it could not carry on mining activities as the licence to carry out mining activities was not renewed by the competent authority. It is urged that the order passed by the Regional Labour Commissioner to pay the wages is without jurisdiction and the dispute if any has to be adjudicated under the provisions of the Industrial Disputes Act, 1947.

8. The learned counsel appearing for the petitioner would urge that respondents themselves have contended that for certain period, the petitioner-Company was closed and urged that same amounts to lay-off. Even if it is accepted for the sake of argument that it was a case of either a closure or a lay-off, then the dispute has to be adjudicated under the Industrial Disputes Act, 1947 and the Regional Labour Commissioner under the Act, 1936 has no jurisdiction to pass the impugned order.

9. Learned counsel for the petitioner would also urge that assuming that the act of the petitioner-Company amounts to refusal of employment, still the Regional Labour Commissioner under the Act, 1936 does not get the jurisdiction to entertain the dispute, as such dispute relating to refusal of employment has to be raised before the competent Labour Court.

10. It is also urged that admittedly 73 workers in whose favour, the order is passed to pay the wage for 31 months, did not work for 31 months and the Act, 1936 does not apply in such a situation and the provisions of the Act can be invoked only if the employees had worked and wages are not paid or short paid or paid belatedly.

11. Learned counsel appearing for the respondent would urge that the Regional Labour Commissioner and the learned District Judge rightly came to the conclusion that the provisions of the

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